‘We’ve got to come up with a more efficient process’

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New Morgan’s Point co-owner Craig Christensen says Government should introduce a streamlined process for handling hotel developers, after he and his partners faced lengthy delays exchanging Southlands for the former base land.

Mr Christensen, in a recent exclusive interview with The Royal Gazette, said the delays leading up to yesterday’s official land swap were frustrating but he and fellow Morgan’s Point Ltd directors Nelson Hunt and Brian Duperreault were determined to forge on.

Meanwhile, Government Estates Minister Michael Scott told a press conference Government had learnt a lesson from the negotiations and already begun streamlining the process.

The Minister said his Cabinet colleague Wayne Furbert, Business Development and Tourism Minister, had already implemented a process to ensure a “better organised” system.

“What we have learnt is that we do need to make sure there is an easier process to attract developers,” Mr Scott admitted.

Mr Christensen told this newspaper the exchange took so long because lenders providing security for Morgan’s Point needed to be satisfied the land, which was left polluted by the US military in the 1990s, was fit for purpose.

“What has transpired is that we have had to go out and do studies of Morgan’s Point,” he said. “[We have had to produce] reports on the condition of Morgan’s Point in order to satisfy lenders and creditors.

“Doing that is relatively expensive. We’ve had to pay for that. We have done this twice, on different parcels of land at Morgan’s Point, in order to satisfy our lenders, who are lending security in order for us to get the property transferred over.

“We never expected it to be this long. Sometimes you get frustrated but I think more than frustration it actually turns you to motivation to really get it done. I think now is really a critical period in Bermuda’s history, the need for something to move forward.

“I think we’re at a huge advantage, being three Bermudians. Most people have said ‘if it wasn’t for you, three Bermudians, anyone else would have clearly walked away in terms of frustration’. Maybe we’re stupid or stubborn or just wanting to do something good for the country.”

He suggested Government consider an autonomous tourism authority which could deal with hotel developers.

“You are often dealing with too many ministries to efficiently get things done,” he said. “You don’t just have Planning but you’ve got the Ministry of Justice, you’ve got Tourism, the Ministry of Works.

“You’ve got the work permit area, because of having the discussion with respect to overseas individuals owning residences, so everyone has a say in this thing, bar probably Youth and Sports and Cultural and Community Affairs.

“Even the best government is going to find that difficult to manage. The question is: do you set up an autonomous group with authority to assist?

“That’s something of debate because do you give the authority which overrides the other ministries? There is some way that we’ve got to come up with a better and more efficient process to get there.”

The Morgan’s Point directors clashed publicly in 2010 with former Premier and Tourism Minister Ewart Brown over delays in getting the land swap completed.

Mr Christensen described new Minister Mr Furbert as a “breath of fresh air”.

“He’s put a lot of passion and effort in and certainly some members of the Tourism Department also do. But they can only do it to the extent of cooperation of other ministries.”

The former Arthur Morris Christensen & Co partner, who retired from the audit firm in December to focus on Morgan’s Point, said there was no question of him and his partners walking away from the deal due to the amount of money they’d spent.

But he suggested the Island could vastly improve the way it handles potential investors, as well as tourists and guest workers.

Regarding hotel developers, he said: “It’s difficult for people to go out there and raise the equity capital. It’s equity capital that’s the critical piece because that’s where people are looking for the very high returns.

“I think if Bermuda really wants to get on the map, this is an area that we need to look at, together with the Bermuda Government, to consider having capital available at reasonable rates to ensure the developments will go forward where completely justified i.e. where there are appropriate business plans.

“We need to consider some form of government guarantee assistance to reduce the cost of the high equity capital if we expect to see other resorts in the market place.”

Mr Christensen revealed he recently gave a delegation of visitors from Qatar, here to sign a tax agreement with Government, a tour of Morgan’s Point.

“They expressed interest in the project and we are due to hear back from them in due course. Some of their thinking was potentially, at some stage, to bring Qatar Airways into Bermuda, which could be significant in terms of air traffic into Bermuda.”

Mr Christensen said he thought the Middle East presented huge opportunities for Bermuda, in terms of potential business.

“The foresight of the Bermuda Government in obtaining a relationship with Qatar can’t be underestimated,” he said. “I think that this is a hugely significant move by Bermuda.”

He said all visitors to the Island should be welcomed with open arms and that those arriving on cruise ships should be treated just as well as air passengers.

“I understand you get a lot more out of an air travel tourist but don’t take those people and treat them as trash.

“I see cruise ship people as an opportunity to actually give them a good time, so they can spread the good word about Bermuda, rather than view them as a third-class citizen in getting in our way, which I think is rather unfortunate.”

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